U.S. stock futures saw a slight rise on Thursday, with Dow Jones futures up 0.15%, S&P 500 futures climbing 0.15%, and Nasdaq 100 futures advancing 0.1%. This came after a strong rally in Wednesday’s trading session.
The stock market rally had a positive close on Wednesday, with Nvidia leading the charge in the semiconductor sector, alongside ARM Holdings, Taiwan Semiconductor, Broadcom, and Marvell Technology. However, Tesla experienced a significant drop, closing at its lowest level in months.
Key Movements and Stock Highlights
ARM Holdings (ARM): Despite reporting an earnings beat, ARM’s stock dropped in after-hours trading. The chip design firm had earlier reclaimed a buy point during Wednesday’s session but struggled overnight.
Google’s Impact: Google’s parent company, Alphabet (GOOGL), fell due to weak cloud revenue and increased capital expenditure plans. Despite the drop in its stock price, Alphabet’s capex plans were seen as a positive for AI chipmakers.
Nvidia Stock: Nvidia surged by 5.35% on Wednesday, regaining the 200-day line after hitting a five-month low. Despite the recovery, the stock was flat overnight.
Tesla Stock: Tesla (TSLA) shares fell by 3.6% to close at 378.17, marking a two-month low. The company faces growing competition in the EV market, and analysts have lowered their EPS estimates for 2025.
Semiconductor Stocks Performance
ARM: Despite a strong earnings report, ARM stock slid in after-hours trading, falling below its recent buy point.
Broadcom: Broadcom (AVGO) gained 4.3%, climbing towards a new buy point of 251.88.
Marvell: Marvell Technology (MRVL) jumped 6.2%, recovering above its 50-day line.
Taiwan Semiconductor: TSM saw a modest rise of 2.2%, bouncing off the 50-day line.
Sector and ETF Performance
Growth ETFs:
The VanEck Vectors Semiconductor ETF (SMH) rose 2.35%, with notable holdings like Nvidia, Broadcom, Taiwan Semiconductor, and Marvell.
The ARK Innovation ETF (ARKK) gained 1.1%, led by Tesla stock.
Other ETFs:
The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) saw a strong 1.1% rise, marking its best close since December.
The SPDR S&P Metals & Mining ETF (XME) increased by 0.9%, while the Financial Select SPDR ETF (XLF) jumped 1.1%.
Market Outlook and Strategy
The stock market rally showed resilience on Wednesday, shrugging off Alphabet’s sell-off. The major indexes are nearing record highs, but the Nasdaq is closer to its 50-day line. Small-cap stocks are also showing signs of recovery.
If you are considering making new buys, exercise caution. The market remains rangebound, and large swings could happen on news headlines. Keep an eye on stocks like ARM, Taiwan Semiconductor, and other names within the AI and semiconductor sectors.
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